August 31 (SeeNews) - Slovenian retailer Mercator [LJE:MELR] said on Thursday its consolidated net profit grew to 10.4 million euro ($12.4 million) in the first half of 2017, up 6.5 million euro on the prior-year period.
Consolidated revenue fell 7.9% on the year to 1.15 billion euro in the six months through June as a result of the divestment of non-core operations of Modiana and Intersport in 2016, the optimisation of wholesale channels, and the closing down of stores in Serbia, the company said in a statement filed with the Ljubljana bourse.
Away from its home market in Slovenia, Mercator Group also has operations in Croatia, Serbia, Bosnia and Montenegro.
On the markets of Slovenia and Montenegro, Mercator's revenue from the sales of goods was higher relative to the same period last year. On the Serbian market, retail revenue was lower, especially due to closing down the units in compliance with the market regulator's decision, the retailer explained.
Mercator's consolidated EBITDA rose to 58.3 million euro in the first half of 2017, up 2.2% on the year, while operating income added 20.7% to 21.7 million euro.
In the first six months of 2017, Mercator's investments into property, plants, and equipment (CAPEX) amounted to 26.0 million euro. Of this amount, 38.8% was used for investments in Slovenia and 61.2% was used for investments in international markets.
Investment into expansion of retail area represented 20.3% of total investment; refurbishments of existing units accounted for 61.3%; IT investments accounted for 10.0%; investments into distribution centers accounted for 5.6% and the remaining 2.8% was invested in non-trade activities.
The Slovenian group operated 1,198 retail units as of end-June, including franchised stores.
In March, Croatia's ailing food-to-retail Agrokor raised its stake in Mercator from 59.47% to 69.57% under a deal with the Netherlands-based financial holding company Agrokor Investment B.V.
According to available data, Agrokor Investment B.V. was set up by Agrokor owner Ivica Todoric with the purpose of acquiring Mercator. The financial holding company acquired the remaining shares of Mercator in 2015, after Agrokor became the owner of just over 50% of the Slovenian retailer in 2014.
However, in June, Russia's Sberbank seized from Agrokor Investment B.V a 18.53% stake in the Slovenian retailer over debt owed to the bank by Agrokor.
($=0.840561 euro)
Poslovni Sistem Mercator d.d. is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here